no medals for Adidas as Irish profits drop

sportswear

24 October 2014 02:30 PM

There were no trophies won by Adidas Ireland off the field last year as sales and profits slumped further.

Adidas is the kit supplier for Munster rugby, but in common with the provincial side which ended up empty handed last year, Adidas (Ireland) Ltd's saw its fortunes decline further in the Irish market recording a 20pc drop in pre-tax profits to €693,000.

Slump

This followed revenues declining by 19pc from €35.5m to €28.8m in the year to the end of Decenber 2013 and the slump in revenues followed a 19pc decline in revenues in 2012 going down from €43.67m to €35.5m.

Over the two years, the firm's pre-tax profits have almost halved from €1.27m to €693,000. According to the firm's directors' report for 2013, the decrease in sales "is in light of difficult trading conditions in the Irish retail market".

The directors state that the results for the year were satisfactory.

The firm paid a dividend last year of €800,000 and this followed a dividend pay out of €1.2m in 2012.

The sales of Munster rugby tops and Ronaldo Real Madrid jerseys contributed to Adidas's revenues here last year along with sales of strips for European football giants such as Bayern Munich and Chelsea.